Step 1 Verify address and network

1. Take the contract address from the project’s official channels you trust
2. Confirm the chain matches where you plan to trade
3. Cross-check ticker, name, decimals and total supply

Tip: the same name can exist on multiple chains, the address is what matters

Step 2 Inspect the contract page in a block explorer

1. Code is verified and matches the deployed bytecode
2. Proxy detected or not, if yes find the implementation logic
3. Deployer and owner history and what else that address shipped
4. Holders tab for unhealthy concentration on one wallet
5. Transfers and Mint events for surprise minting after trading began

Red flags: unverified code, fresh mints, single whale with outsized share, frequent pause and resume of trading

Step 3 Look for dangerous functions in code

1. Mint and Burn who can call them and what limits apply
2. Ownership who is the owner and is it a multisig
3. Blacklist and Pause can the owner block wallets at will
4. Trading tax buy and sell fees especially above 10%
5. MaxTxAmount and MaxWallet hard caps on order size or wallet size
6. EnableTrading and SetFee owner can change fees after launch

Healthy setup: multisig or DAO ownership, modest taxes, mint disabled or tightly capped, no hidden blacklists

Step 4 Check liquidity and market depth

1. Where liquidity sits on DEX who controls it and whether it is locked
2. Presence on major exchanges and the same contract address
3. Real volumes and spreads avoid empty order books
4. Honeypot test ensure you can sell back on DEX without errors

Good practice: buy a tiny amount then sell a tiny amount to confirm both legs execute

Step 5 Do a test trade

1. Start with a micro amount and confirm you receive and can sell the token
2. In your wallet use allowance limits instead of unlimited approvals
3. Keep a separate “testing” wallet away from your main balance

Network checklists

EVM chains Ethereum BNB Chain Polygon Base Avalanche and others

1. Contract address and Chain ID match
2. Code verified in the explorer
3. Mint blacklist pause and tax functions reviewed
4. Liquidity locked and liquidity owner is known
5. Micro buy and micro sell succeeded
6. Approvals limited by amount old approvals revoked

Solana SPL

1. Mint address matches the official one
2. Token metadata valid name ticker decimals
3. Market on your DEX or aggregator maps to this mint
4. No arbitrary account freeze by the update authority
5. Test buy and sell completed with reasonable fees

TON Jetton

1. Jetton master address matches the official one
2. Minter and jetton metadata verified
3. Liquidity pool exists and pool ownership is understood
4. Transfers and swaps succeed without odd flags
5. Telegram 2FA enabled and sessions audited

TRON TRC-20

1. Contract verified in the network registry
2. Owner and mint rights reviewed no blacklist logic
3. Exchange deposit network is TRC-20 for this ticker
4. Test buy and sell passed with low network fees

Common scam patterns

1. Clones with the same name and ticker on another chain
2. Hidden tax that flips to 99% after an “announcement”
3. Blacklisting buyer wallets after launch
4. Address swap in images or posts impersonating the project
5. Unverified proxy where you cannot audit the logic

Internal links

1. How to verify a token contract and deposit network on an exchange — add your guide link
2. How to store tokens safely — add your wallet security checklist
3. What unlocks and vesting mean — add your explainer

FAQ

Can I rely on the name and ticker
No, only the contract address and the chain are definitive

Should I wait for verified code
Yes, without verified code you cannot assess real logic and risk

Are trading taxes normal
Modest fees can be fine, double-digit taxes are often a manipulation signal

What matters most for safety
Correct contract and chain, verified code, no dangerous owner controls, real liquidity and a successful test sell